Intel, the world's largest microchip manufacturer, last night announced lower first-quarter revenues and earnings, but the figures were broadly in line with analysts' expectations after the company's profit warning last month. The company, which employs 3,500 people at its European headquarters in Leixlip, Co Kildare, said weak demand had caused the slowdown.
In a statement, Intel predicted second quarter revenues would be similar to the same period in 1997, at around $6 billion. But it expected growth in the second half of 1998.
Intel also said it expected to reduce its worldwide workforce by around 3,000 people over the next six months "predominantly through attrition". But a spokesman last night stressed that the company's plan to open a new microchip plant at its Leixlip facility next month was still on course. That move will bring Intel's investment in Ireland to $2.5 billion and is scheduled to boost the firm's workforce in Ireland to more than 4,000 by the end of 1999.
The firm said revenue for the first quarter of the year was $6 billion (£4.4 billion), down from $6.4 billion in the first three months of 1997. Net profits were $1.3 billion, down 36 per cent on the $2 billion earned in the same period in 1997.
The company said it expected revenue for the second quarter to be flat, or slightly down.
In March, Intel shares lost 11 per cent of their value after the company issued a profits warning.
If the reduced level of profits continues, it could hit Irish workers in their pay packets. The company has a generous bonus scheme when the company is doing well.
The payments, made twice a year, come in the form of remuneration for notional extra days worked.
PA adds: An Intel spokeswoman said last night that nearly one in 20 jobs would be lost in Britain and around the world, due to "disappointing" demand. But no cutbacks were planned for expansion of manufacturing in Ireland, where the workforce was expected to grow to 4,000 later this year, she added. "Dublin is our only manufacturing plant in Europe and is very successful," the spokeswoman said. "It will be making the very latest processors, and is really at the cutting edge."
